Posted tagged ‘Austrian School’

Must Reads For The Week 8/31/13

August 31, 2013
The pen is mightier than the sword...

The pen is mightier than the sword… (Photo credit: mbshane)

As Long As You Don’t Eat, Price Inflation Is Under Control, at Have you noticed that certain items, like raisins and tuna, have less in the box or can, for the same or higher price, than six months ago. Is this a way to hide inflation?

Airbnb And Its Enemies: Who’s Afraid Of A $10 a Night Sofa, by Jim Epstein, at The free market finds a less costly way to provide a service, but the incumbents in the hotel industry try to get Government to stop this voluntary activity. When businesses lobby Government for protection from competition, it proves Government has exceeded its explicit constitutional powers.

Texas Oil Output Has Almost Doubled In The Last Two Years, by Mark J. Perry, at The decisions of individuals, which is the market, is an unstoppable force. These economic forces are creating an oil boom. These same forces are working to correct Obamacare, which is why the President has stopped the implementation of some of the provisions.

The Huffington Post On Ludwig von Mises, at The fact that the Huffington post wrote an article about the great Austrian economist, Ludwig von Mises, gives us hope. This wouldn’t have happened just five years ago.

Is The Secular Bear About To Growl? at These are interesting charts about historical stock market run ups and declines. History isn’t a predictor of the future, it can only show past trends that may be similar to today. These trends are subject to change as the variables may not act as they did in the past.

Bitcoin Group To Meet With 7 Government Agencies, at The Government doesn’t like the free market, especially in money creation. Governments know if they lose their monopoly on money creation, their power will erode substantially because they won’t be able to fund their expansion.

NSA’s Surveillance  Programs Are The “Most Serious Attack On Free Speech We Have Ever Seen”, by Josh Levy, at Government action creates incentives and constraints that individuals consider when they act. People will begin to censor themselves when they feel their speech is being monitored.

When It Comes To Obamacare, Ignorance Is Bliss For Young Americans, by Scott W. Atlas, at The administration is propagandizing young people into signing up for the health care exchanges, for one reason only. They want young people to pay more in insurance than they receive in benefits, essentially funding the Obamacare boondoggle. You got what you voted for.

A Truly Great Phony, by Thomas Sowell, at An article by Thomas Sowell, enough said.

Re-education At George Mason, by Walter E. Williams, at An article by Walter Williams, enough said.

Thomas Woods Explains The Austrian Business Cycle Theory.

June 3, 2013

Thomas Woods does a brilliant job in explaining an abstract concept in a concrete way in this video. In a market economy the purpose of interest rates is to coordinate production across time. This is the concept you have to understand if you want to understand the Austrian Business Cycle Theory.

For more analysis read these articles.

The Austrian Business Cycle Theory: A Brief Explanation “, by Dan Mahoney at

The Role Of Interest Rates In A Market Economy, by

Counterfeiting By The Federal Reserve, Although Legal, Still Results In Theft, by

Human Action Reveals The Reality About Political Decisions.

May 1, 2013
English: Cover of the scholar's edition of Hum...

Human Action by Ludwig von Mises (Photo credit: Wikipedia)


The book  Human Action (link here), by Ludwig von Mises is full of great insights into how the world works. These insights are very helpful in understanding what happens in the world of Government and politics. The books starting point for analysis is this: man acts because of the mere fact of his existence. Human action is purposeful behavior. Action is not verbal preference, it is an individual choosing, and acting, to reach a particular end. Man acts to substitute what he thinks will be a more satisfactory state of affairs for a less satisfactory state. He wouldn’t want to change his existing state of affairs, if he didn’t think his action would bring about a better state. His actions will reveal the correctness of his thinking. Action is a tangible thing and cannot be confused with wishes or hopes. Both the material and the ideal are valued differently by each individual, and what each individual values changes in time and place. What a man values the highest drives his actions. He uses available means to achieve his most highly valued ends, and his action toward his most valued end, takes place in a world of imperfection and constant change. So to summarize: (more…)

Murray Rothbard: When Keynesianism Collapsed! Economists Are Still Trying To Preform CPR On This Corpse.

January 16, 2013

One of the great communicators of complex economic principles is Austrian Economist Murray Rothbard. You won’t find a better step by step explanation of economics than his book Man Economy and State.

I got this video from

For more analysis read this article titled, “The Many Collapses of Keynesianism”, by Lew Rockwell at

If you are wondering where inflation is today read this article titled, “Where Is The Inflation” by Mark Thornton at

Inflation doesn’t appear magically for no reason, and then the Federal Reserve rides in on its white horse and saves us from this beast. Inflation is caused by expanding the supply of money. The beast of inflation is caused by the savior on the white horse (more…)

Dallas Fed. President Fisher Points to the Feds Real Problem in Speech at University of Texas.

November 9, 2012

English: Cover of 2010 edition of What Has Gov...

Remember our discussion about Human Action in a previous post, Mises’ “Human Action” Explains Lies About Libya. Use the lens of “Human Action” to analyze the actions of the Federal Reserve. These are quotes from a speech in late September by Richard Fisher Dallas Fed President, excerpted from an article from Fox Business.

“We’ve never been here before so none of us know how we’re going to navigate out of this particular quadrant of the liquidity pool in this ocean of money. And what I’m concerned about is that we may be painting ourselves into a corner,” he said.

“We’ve done a lot … It’s not clear to me despite our theoretical ability to understand the tools very well, in practice, how we are going to get out of this. Read more here, Fed’s Fisher:” Were drowning in unemployment”

These are the kinds of admissions which result in finding a horse head in your bed. You are not supposed to speak this honestly even when trying to hide the truth in coded language. (more…)

Ben Swann Fox 19 Reality Check. What is QE3?

October 2, 2012

You will not find any reporter speak the truth like Ben Swann does in his reality check segments on Cincinnati Fox 19 News. We’ve talked about quantitative easing in previous posts, and this video is an outstanding explanation which will add to our understanding about economics and what happens when Government intervenes.

Ben Swann has enough respect for his viewers to tell them the truth.

Keynesianism vs. The Austrian School.

September 19, 2012

F. A. Hayek — “The coordination of men’s activities through central planning and through voluntary cooperation are roads going in very different directions: the first to serfdom and poverty the second to freedom and plenty”.

This quote by Hayek sums up the ideological battle being waged around the globe today, but especially here in America. This is not a new fight. The Revolutionary War was fought over freedom of the individual to order his life as he sees fit, versus the power of a King to take those decisions from him and make him a subject. Library shelves can be filled with the volumes of books that deal with this ideological battle, summed up so brilliantly in one sentence by Hayek.

This Keynes vs. Hayek rap video deals with Keynesian intervention, vs. the Austrian Business Cycle Theory.

The rest of the above quote by Hayek is —  “The battle for freedom must be won over and over again, the socialists of all parties must be persuaded or defeated if they and we are to remain free men.”

The Fight of the Century Keynes vs. Hayek Round Two is better. Click on it when it pops up after the first video finishes playing.